Colombia Firm Energy Market

Author

Cramton, Peter ; Stoft, Steven

Author_Institution

Maryland Univ., College Park, MD

fYear

2007

fDate

Jan. 2007

Firstpage

124

Lastpage

124

Abstract

A firm energy market for Colombia is presented. Firm energy - the ability to provide energy in a dry period - is the product needed for reliability in Colombia´s hydro-dominated electricity market. The firm energy market coordinates investment in new resources to assure that sufficient firm energy is available in dry periods. Load procures in an annual auction enough firm energy to cover its needs. The firm energy product includes both a financial call option and the physical capability to supply firm energy. The call option protects load from high spot prices and improves the performance of the spot market during scarcity. The market provides strong performance incentives through the spot energy price. Market power is addressed directly: existing resources cannot impact the firm energy price

Keywords

hydroelectric power; power markets; pricing; Colombia; financial call option; firm energy market; hydro-dominated electricity market; incentives; spot prices; Clocks; Costs; Electricity supply industry; Floors; Investments; Protection; Qualifications; Regulators; Supply and demand; Thermal loading;

fLanguage

English

Publisher

ieee

Conference_Titel

System Sciences, 2007. HICSS 2007. 40th Annual Hawaii International Conference on

Conference_Location

Waikoloa, HI

ISSN

1530-1605

Electronic_ISBN

1530-1605

Type

conf

DOI

10.1109/HICSS.2007.133

Filename

4076621